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tv   Bloomberg Technology  Bloomberg  November 16, 2016 12:00am-1:01am EST

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>> is the inherent in hong kong. i'm angie lau with an update on the stories. opec has launched a final push to secure the deal on output cuts. venezuela is leading the charge after meetings this weekend failed results with saudi arabia, iraq and iran remaining at odds over how to share the proposed cuts ahead of the cartels november 30 meeting. chinese premier is said to be confident of meeting major full-year targets with aggregate demand expected to rise moderately. i says come on the back of easing monetary policy, ensuring the growth target of about 6.5%
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will be met. paul ryan has won the unanimous another term as house speaker and says he has the backing of president-elect donald trump. texas senator ted cruz is said to be in the running for attorney general or he visited trump tower on tuesday, but declined to say whether he is under consideration. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. let's get a quick check of the markets. after in trading is getting underway in hong kong and china. we are seeing $45 a barrel oil. tokyo and sydney just closing for the day. ♪
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cory: i'm cory johnson in for emily chang. snap is filing to go public. sources say in may be the biggest tech ipo in recent years could come as early as march. the fangs stocks have come roaring back. palantir cofounder joins us on his longtime partner peter thiel and how a trump presidency could impact technology. snapchat begins the process of going public -- the parent company snap is said to have filed confidentially for an ipo. that is something a couple he can do that makes less than $1 billion in gross revenues. we reported last month the company would seek as much as $4 billion in valuation, anywhere from $25 billion to $40 billion on less than $1 billion in revenue. what is the news? sarah: snap is filing
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confidentially because it does not have $1 billion in revenue yet, so it can do that. this ipo could happen as soon as first quarter of this year, maybe as early as march. it could be up to $4 billion in what they raise and this is incredible considering they filed to go public before the election. everything seems much on track. cory: fairly amazing that if we are talking about a $25 million -- $25 billion ipo, or $40 billion, that would be 25 times revenue at best. facebook went out at 12 x revenue and collapsed afterward. this is very aggressive rising. -- pricing. sarah: this is absolutely aggressive. what they are going to try to emphasize is their growth potential. snapchat is very early on the path for revenue and have a third of facebook users in the u.s.
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they are not making as much money off of every user as twitter or facebook do. twitter has fewer daily active users and is expected to have $2.55 billion in revenue. snapchat will probably have $350 million, definitely a fraction. their point is going to be to emphasize growth. cory: you had the tiger by the tail in twitch, a business that grew so fast that had so many users and such revenue, not unlike snapchat. what is your take on a company that has decided to go public with the backing they have had? justin: snapchat has a tremendous network effect. they have people using it many times a day and i don't think , that's likely to change and i think it is likely to grow as more people spend more time on mobile around the world. the long-term prospects are extremely strong. cory: what do you think about
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the ipl as a way for a company to decide to grow to the next step? justin: it makes sense. it's the next step to get liquidity for early investors, to get liquidity for early employees, i think it's all part of the process. the price is pretty high, but will see in the long-term these tech companies have a strong network effect will be extremely valuable. people think facebook is super valuable right now but they only have 1.7 billion people and billions more will eventually join facebook. cory: i have a chart that shows the ipo business, but we will get to that in a minute. the ipo business itself has been very quiet. if you look at this chart, the numbers we are talking about, how many ipos have happened in recent years, really low numbers for 2016. this is a dollar basis. if you go here, you see the
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benefits from facebook, but fundamentally, 2016 is an enormously quiet year. why is that? sarah: there have been many factors why we haven't seen as many ipos as we expected. one thing we keep hearing over and over is that 2017 is the year we might see snapchat, uber, dropbox and airbnb get more serious about going public but the fact of the matter is that private capital has been extremely easy to get in recent years and it looks like that may have peaked and now companies may have to look for other sources of capital as vcs and later stage investors want a return on investment and are getting skeptical about return on growth prospects. cory: i can't wait to see what the numbers really look like. and see the spin that will surely be a part of it. sarah: anyone who wants to link it to us. cory: bloomberg is here to help.
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i want to change the subject but stay on social media. google and facebook have announced some actions to stop users from stop posting fake stories and the riving -- deriving revenue from that. as chris pointed fingers at these stories may have influenced the u.s. presidential election. this is a story that has exploded in recent days after the election of donald trump. to me, the strongest thing about this was the story on buzzfeed about the macedonian bloggers who are putting up fake stories to generate clicks to get paid. sarah: this is an extremely lucrative business if you can figure out a way to play it. the outrage sells. clicks are easy to get on these social platforms and facebook for its part needs to take a close look and is taking a close look at its responsibility for distributing information. fake news is one thing and that might be easy to quash but what might be more difficult to
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address is these more biased stories that give you some of the facts and maybe create a misleading perception. they are not necessarily fake but they are more propaganda like in their nature. cory: you saw the fake story of a pending hillary clinton indictment and trumped up -- pun intended -- by fox news. they actually ran with that story which wasn't real. facebook's founder, mark zuckerberg says only 1% of the stuff up there was fake. >> i think that's completely wrong. i think that is not accurate. if you look at that story that it just mentioned, it started on a viral site that was newly registered. that story was shared 216,000 times on facebook, where as the new york times story that was true that said hillary clinton, the fbi was clearing her was only shared 80,000 times.
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the impact of some of these fake stories can be huge and i think it is facebook's obligation and ethical responsibility to not help spread take news. -- fake news. cory: did facebook make money on the spreading of fake news? justin: i don't think they are directly profiting off of it specifically but it is optimized for engagement. that means people click on what they want to see and people click on what confirms their biases. facebook has optimized their algorithm to show people what they want to see and oftentimes that does not correlate 100% with what is true. cory: it sounds like they did make lots of money on these clicks, but it was set up in such a way that they were a great beneficiary of all these clicks on all of these fake, inflammatory stories.
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>> facebook is optimizing for engagement. when people are engaged, whether it is true or not, they spend more of their time and attention on facebook, so they are benefiting from it. cory: on the last conference call, facebook was warning us that revenue was going to slow down. mark zuckerberg talked about the ambulance of the election and how many election-related posts were clicked on, citing that is -- as one of the things that was stronger in part of the third quarter but not going forward. sarah: now they are trying to say we did not have a big influence on the election. we are just one of many outlets people can get their information from and that masks the fact that facebook is a place where a large percentage of americans find their news and get access to their information. but facebook itself wants to be
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seen as a medium for this information and not control how it is spread. they want to be a place with posts from friends and family, but a lot of the post this year have been about the election. and they have spread a lot of these things and facebook wants to be as far as possible away from being any kind of arbiter of truth. i do think there are some technical ways they can address this problem that don't go against their neutrality. cory: it is an interesting problem for them to deal with. it's a whole different animal for facebook. thank you very much. still ahead, john lyons said and -- says they may be looking at an ipo soon and their close ties , to donald trump. this is bloomberg. ♪
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cory: global ceos are talking about innovation and how it might help diversify the saudi arabian economy away from oil. we sat down with joe lonsdale about what peter thiel will bring to president-elect donald trump's transition team. joe: peter is one of the smartest people i know. what is unique about him is he is able to look at things from a contrarian perspective. the way he maps out the world is not the way people in the media talk about what matters. having peter there will give him a perspective. >> what do you think his priorities will be? joe: i'm not sure what his
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priorities will be. i think he has a lot of common sense around things that matter for the tech sector. a lot of the regulatory reform and a lot of the immigration type things. i think peter really believes in making america a place where you are continuing to advance and build new things and think about the future. he talks about how the 1960's were looking to the future and sci-fi was really an and how we do not have that anymore. i think he's going to try to figure how to put that back into place. >> do you think his role ensures a positive or at least an accommodative environment for technology and maybe even silicon valley more specifically? joe: i don't think you can say anything for sure. it gives me a lot of comfort that we are not going to trip -- torade tough that screw up this trade stuff that a lot of us are worried about. it's going to be good for up-and-coming businesses. for established businesses, i don't know if he can protect them or not. erik: given the kind of work palantir has done for the u.s.
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government, what kind of restriction does it face in saudi arabia? joe: i think the restrictions on palantir and i can only speak is -- as a cofounder, not someone running it -- the u.s. government has encouraged palantir to work with other countries and go after terrorism is one of the things that they do. there's a lot of governments that want to help work with the u.s. and do that job but obviously, they are not going to want to support regimes doing things against our own civil libertarian values. there are other positions like you can't work with certain parts of china or iran, but i think a lot of the world has become more self-imposed in terms of what silicon valley wants to help with. erik: one of the curious things about palantir is that it remains private. if i not mistaken, your
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am cofounder remains ceo of the company and said running a company like this would be difficult if it were public. do you think that is still the case? joe: i think a lot of these founders are very bright people that i learn a lot from overestimate how hard it is to be public. a lot of people are very scared of becoming public and a lot of people who have made the transition, it's not as bad as you think. erik: do you think the time will come when palantir can go public? joe: i think so. >> how long do you think will take? >> as an early shareholder, i would like to see it earlier and i understand why other people might want to delay it. erik: of all the trends in technology today, whether it is big data, machine learning, ai or autonomous cars or anything else for that matter because the list goes on, what excites you the most? joe: what excites me is how the big industries are going to
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change over the next 10 or 20 years. when you talk about ai, those are tools that we use. just like the cloud is a tool that we use. the fundamental truth is data is not being used to run these ministries in the way they could be. there are platforms being put in place to harness data that for the first time is input into health care. it will make those industries work in a better way. i'm excited about fixing big industries and using technology to run them. erik: one of the questions you must get all the time is what happens to the jobs? joe: that is another great question. i think jobs are not as much of a zero sum thing as you think. if it is correct that we're going to get rid of the manufacturing jobs, that means we have a world where everything you could buy is extraordinarily cheap. there is no extra marginal cost. the cost of everything we buy goes down by 98%.
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in the meantime, there are still services jobs, entertainment and other things people could do to create wealth, so i think it is a golden age if we can all afford things cheaply. not nearly as scary as people say. erik: how do you capitalize on that as an investor? joe: i think the shift that is going on is the platforms that we put in place. you are going to have to figure out what those platforms are and invest in this platform companies. cory: that was palantir technologies cofounder joe lonsdale and that was our own erik schatzker. coming up, we will hear from the newly named nasdaq ceo and her thoughts on how the financial future will change under trump, next. this is bloomberg. ♪
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cory: the business of running a stock exchange has changed quite a bit. disclosure requirements are
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different. after that come a changing of the guards. we talked to the incoming nasdaq ceo, adena friedman on changes at the exchange. adena: i've been working with bob now for 10 years and when i came back as president and coo, he and i have been partnered together to make sure we are optimizing the business. i feel like i have my handprints on the vast majority of what we have been driving toward and focused on. my job is to continue the journey to make sure we continue to be a critical market for an infrastructure provider. betty: bob has been very focused on technology and expanding those capabilities at the nasdaq. will that be a major focus going forward for you? adena: technology is deeply embedded in our dna. it's how we got started to be the first electronic exchange. that will continue to be our
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focus and how we can bring emerging technologies to interact with the capital markets as efficiently and effectively as possible. that is coupled with great client service, regulatory operations, and all the other things that come with being a world-class exchange. betty: is there anything different you might do, anything you might expect to see out of the nasdaq? adena: we have been transforming nasdaq into a global market technology provider and i expect i will continue to take that journey with the clients and employees as we continue to be an exchange operator. betty: there's a lot of uncertainty around policies in general. we were just hearing president obama talking about what may or may not be expected. there's a lot of talk as we
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heard from president-elect trump about rolling back some regulations imposed on the financial world. how's that going to affect the nasdaq? how are you preparing for that? adena: to the extent we do have a republican administration and to the extent that they continue to show a pro-business orientation, that does tend to come with what i will call balance in regulation. one area that has impacted our industry has been dodd-frank and while there are a lot of good safeguards that have been put in place within the industry coming from dodd-frank, there has been unintended consequences. most notably, banks are no longer in a position to offer much-needed liquidity in some of the markets where we operate. we would like to see the opportunity for dodd-frank to be modified for banks to take responsible risk taking to provide that really important liquidity. betty: modified or retracted?
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adena: we have to recognize an enormous amount of work went into the creation of dodd-frank, and there's a lot of reason for it. we have to be sure we do not have revisionist history. we also know that whenever you put in new regulation, there are unintended consequences that come with it. how can we make sure we are modifying the regulation to make sure it is having the impact you wanted to have? betty: would you say president-elect trump is good for the exchange? for the financial market? adena: from a we have seen so -- from what we have seen so far which is only one weekend, a , republican administration with a pro-business orientation is good for the financial industry. betty: he has pledged to cut back on corporate taxes. how big an effect is that going to have? adena: if you have some of the tax policies they are
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considering, in terms of potential changes in corporate taxes, the repatriation tax, holidays and other things that make it so companies can optimize the cash they are generating and reinvesting in the business appropriately and reinvesting in growth, that is good for the economy. cory: our own betty liu with adena friedman. she takes the helm of the nasdaq in january. once are watching is tencent the , chinese internet giant set to report third-quarter earnings on wednesday. last quarter, they delivered $5.5 billion in sales, a 52% increase. sales are predicted to rise 47% in q3. china's popular messaging app wrapped up a purchase of a game maker. up next, one of the fastest-growing startups in silicon valley, we talk about the future of cyber security under a trump administration. if you like bloomberg, check us
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out on the radio. my show is at 2:00 wall street time. check us out any time on the bloomberg radio app. this is bloomberg. ♪
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>> is 1:30 here in hong kong did paul ryan has won unanimous republican support for another support -- for another term as house speaker and says he is backed by president-elect donald trump. texas senator ted cruz is said to be in the running for attorney general. he visited trump tower, but declined to say whether he is under consideration. trump says only he knows who is being considered. -- pboc has weakened for today's rate has been set at six point nine from -- today's
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china's economic fundamentals do not support a long-term you want depreciation -- yuan depreciation. analysts say the crackdown on money could dampen consumer spending enough to damage a recovery in corporate earnings. the finance minister warned that a ban on high denomination notes would hurt consumption in a short-term i create a liquidity crunch. tourists have been stranded on a new zealand island after the earthquake. military vessels from the u.s., australia, and canada are working alongside for new zealand ships. airlifts are underway to get a most 1000 people out of the east coast town of chicora -- kaikoura. this is bloomberg. how thet a check on
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markets have been trading in the asia-pacific. position.y positive the regional index has a whole having its most convincing gain we have seen since thursday. a lot of traction coming back into these emerging markets, recovering from four-month lows. hong kong is higher for the second consecutive section -- session. gain, uplso getting to almost 3% ahead of the release of its earnings later today. there has been a little bit of a sellout coming through from the shanghai market. it is at a 10 month high. using quite a lot of strength coming through on the korean lawn -- yuan. we have seen some fluctuation in the yen also. the japanese equity market is it near nine-month high.
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banking stocks in particular in japan today. australia is pretty flat. it has been a fairly positive session here in the asian equity market. we will be live from london at the top of the hour. ♪ cory: this is "bloomberg technology." i'm cory in for emily chang. one of the big unknowns is the threat of global cyber attacks. u.s. intelligence said russia was responsible for attacks on democrats and trump disagreed. then candidate trump said he would fight fire with fire when it comes to cyber security. mr. trump: there's a deterrent against attacks the united states must possess and has to the unquestioned capacity to launch crippling cyber site -- cyber counterattacks and i mean crippling. crippling.
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this is the warfare of the future. america's dominance in this arena must be unquestioned and today, it is totally question. cory: is that the case? joining us is the ceo of attaining them -- tanium. it's one of the biggest companies in the u.s. also with us is bloomberg technology's brad stone. brad: thank you for joining us. let's start with the events in washington, d.c. candidate trump rebuffed some evidence that russia was responsible for the hacks on the dnc. now he is president-elect trump. how are cyber security firms viewing the election? guest: i think we as a community are interested in seeing how he governs rather than what he says as a candidate. i think he's got some good advisors.
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i think peter thiel will be a really good influence there. i think the reality of the situation is it's harder to do it when you're sitting in a chair and got the responsibility and the results rather than just talking about it. there is a wait and see attitude for everybody. brad: you told my colleague emily chang that you meet with defense secretary ashton carter fairly frequently. do you expect that to continue and what do you make of the names being bandied about for donald trump's defense secretary like jeff sessions? guest: we have had a great relationship -- the whole tech community -- with secretary carter. he's done a lot to make the dod a much more approachable environment for companies like ours. his initiatives have been fantastic and i think somebody who knows how the system works in washington is really important. jeff sessions clearly has a lot of experience. there are two things that need to be fixed.
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first, the whole appropriations system. the way they are getting a budget is hard for our customers in the dod. if they stop doing things like sequestration and continuing resolutions and they've got the budget to fight the good fight, that will be better. i think the second thing is we really need a president who sees this as a critical solution that needs to be addressed. i think we have both of those things and secretary sessions, if he is there, understands the problem very well. brad: tell us a little about the company and how it relates to cyber security. guest: what we do is provide visibility on large environments that are changing quickly. if you look at the department of defense, they've got four plus million computers. sometimes it's hard to see where they were and what they were doing, whether they were secure,
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and be able to fix them in real time. we have provided a platform that allows them and many large global institutions to see exactly what they have and fix it. it turns out people overcomplicate this problem. it is a problem about hygiene, making sure the racing things -- the basic things you are supposed to do are being done and at a large scale that is hard. we make it easy to do that effectively. brad: some tech companies have talked anonymously about moving servers overseas. they're worried maybe donald trump comes down on the law enforcement side of the equation when it comes to encryption. is that too extreme? guest: i don't think it's too extreme. i think there is a tension in our environment where privacy and security are at odds. we work with law enforcement and want them to have the data they need to do their job because you
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and i and everyone listening rely on them to do a good job. conversely, we have an institutionalized expectation for privacy. if i had a black hole in my pocket and i could throw anything in there and perfect encryption made it so no one can get it, the whole idea of law enforcement becomes more difficult. if you have data where you cannot conceive of the possibility of ever getting to it, moving it out of the jurisdiction might be rational. but conversely, donald trump has the most effective offensive capabilities that have ever been invented in this world. on the cyber side, the nsa and many of the things he governs arch immensely effective and i think they have long reach. you can move your servers out of the country, but i don't think that will really help you. brad: we've seen a lot of companies do this setting up , data centers in ireland and new york. every company from cisco to hewlett-packard, microsoft with concern about the nsa.
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what do your customers say about that going forward with the notion that returns of some of the practices of the past that caused companies to lose business? guest: we refuse to host our customers data because i don't want to be part of that discussion. it is extremely difficult when you have customer's data and , someone walks in with a court order and someone wants you to disclose it, to choose what you want to do. our customers are more capable of making that decision and we are with that data. you talked about the potential of an ipo in 2017 very -- in 2017. snapchat today, bloomberg reported filed privately. are we going to see a tanium ipo ? and will the climate he amenable -- be amenable to finally going public? guest: i've been on record
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saying i think an ipo is the right way for a company like ours to proceed. i think it is fair to my employees, investors and customers. we think the time horizon is reasonable. we have not started the formal process. when i look at these companies that want to stay private, they don't want to deal with investors or the fcc, i understand the appeal but it's not fair to any of the constituencies we run this company for. we think we will be ready for the foreseeable future and i have been clear about our constituency. brad: it's one thing to have a great solution, but sometimes new customers like to hear that you are traded on the stock exchange and there some new level of trust in your product. guest: the mission we are on here, we do one of the most important things our customers
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will ever buy. we secure their core network and their most important information. they want to see that we are able to run a reasonable company, that we are able to grow in a sustainable way and i think the disclosure rules public companies have to go through force good discipline and management. i think that is why a lot of our peers are not super excited about it. not because they don't run clean companies, but because people don't like it when people are looking at them when they are not doing the right thing. i think it's healthy for people to know we are being scrutinized, our numbers are being checked and our customers know we are going to be here 10 years from now. i hope we are doing this interview 10 years later and i get to be in this seat. i have no other dreams other than running this mission. cory: that is reassuring to hear. still ahead, we're going to head to saudi arabia to catch up with
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to see why he is optimistic about a trump presidency. this is bloomberg. ♪
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cory: let's head back to riyadh where global tech pioneers are talking about innovation in saudi arabia and how it might help the country focus on -- company focus on something other and oil. erik schatzker sat down with sebastian thrun. they talked about whether a trump presidency present a dark cloud for technology. sebastian: if you look at the stock and bond market, it has been moving away from bonds. for the tech industry, it is an opportunity. it is a great reminder.
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erik: peter thiel is part of donald trump's transition team. does he have silicon valley's back? sebastian: i think that is being debated. he's looking forward and silicon valley is a very democratic place. people are open to accept opinions all the time. >> what do you think he is open to considering your industry? >> i think what is going to happen -- we don't know what it means. he has not said very much, but i am optimistic. i think he has the nation at heart and i think he wants to bring us forward. erik: people know you best for being one of the chief developers behind google self driving cars. every day, it seems like the dream of autonomous vehicles are that much closer to reality.
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the question is how much closer? how long before we are there? sebastian: i think we are really close. i sat in google cars for many years and i can tell you that they drive better than most people drive. it is a question of business launching your first products in , moving to the market. erik: what is the business model for autonomous vehicles? >> there are two or three different models. there are the models tesla uses. i haven't has a myself. -- i have a tesla myself. i love it. then you have transportation as a service where you have an uber-like company where you order your car, it comes and takes you up. then you wave goodbye and it goes to someone else. ultimately there is a bigger impact for disruption in the
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world. you don't need as many cars. it is estimated we only need about a third as many cars as we need today. erik: it is really easy in a scenario to figure out who the losers would be in the world of self driving cars. car manufacturers, presumably. if they're going to make one third fewer vehicles and they -- than they make today. based on what we have seen and what you know, which companies will the winners be? sebastian: tech companies have a strong position. in most disruptions the , incumbents are hard to move forward. companies like google and uber. erik: the united states has long been, perhaps for the past half century has been the heartbeat of innovation. where is that going to be 50 years from now? sebastian: i think the united
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states has a good chance of staying at the head of innovation. we attract some the most interesting people up from around the world. i'm a big immigration fan. i am an immigrant myself and i've given a thousand people jobs in my little career. i think is important for us to keep smart people immigrating to silicon valley. if you don't do this and focus -- and stop focusing on things like education, others will take over like china. erik: what if a new government shuts the door to immigration? sebastian: i hope the new government will not shut the door to immigration. immigration is one of our strongest elements. there are certainly questions about legal immigrants, but we are a nation of immigrants. erik: if it were to happen, what would the implications be? what happens to silicon valley and american competitiveness? sebastian: others would pick up and take over as the most creative nation on the planet.
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we need to be open to smart people and let them emigrate and build businesses and create work for americans. cory: that was erik schatzker with sebastian thrun from riyadh. tomorrow, don't miss it, jim chanos on the fed, the election -- he was a big hillary clinton supporter and the pending tesla and solar city merger. he knows a lot about that. that's 4:00 wall street time. up next, the growing wealth divide in silicon valley and what we can learn from the nonprofits looking to fix it. this is bloomberg. ♪
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cory: twitter making changes to help users deal with harassment and abuse. it has been top complaint from users and one of the reasons twitter failed to find a buyer a few months back. now users can filter out certain words from their notifications
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words,al words, curse and their ilk. there are tools that even block entire conversations. income inequality is a big driver of u.s. election results and sadly, quietly, the income gap is extreme and the heart of -- in the heart of technology, silicon valley. they have 76,000 millionaires and billionaires and many of them are giving great gobs to charity. at the same time, nearly 30% of silicon valley residents rely on public or private assistance to get by. many nonprofits are struggling to keep up. my guest co-authored a study that looks at these issues in silicon valley and joins us from san francisco. this is a amazing report, and it is really disturbing because you have people who have made fantastic amounts of money were very active in charity giving money away, yet they live among so much poverty as if the money they are giving away is not having an impact. why is that happening? guest: a lot of these wealthy
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individuals -- it's a huge continuum of millionaires and billionaires, 76,000 as you said . they are not aware of the local need and it's hard to imagine when these two separate groups of people are living blocks or miles apart often separated by a , freeway. the first issue is awareness. understanding poverty is happening in their own backyard. once they understand the issues, we are hopeful they will start taking action and start to think about how they can deploy their philanthropy locally. cory: one of the things i hear from entrepreneurs as they want -- is they once to reinvent philanthropy and go to the places where they will get their biggest bang for the buck. one of the things we see is wanting to go to places where things are cheap which is not silicon valley. guest: there are a lot of places -- philanthropic investments which have greater return or
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social impact, but we are living in these communities and we are responsible for them. we're talking to philanthropists about the kind of communities they want to be living and working in. even though the return on investment might be more expensive, we think it is worth allocating part of your philanthropic portfolio to these issues. to allocate a portfolio where your family wants to work and where your family wants to be. cory: what is the thing causing these nonprofits in silicon valley, what is the biggest problem? guest: the biggest problem we found is they are being displaced, much like the middle class and the working poor. nonprofits are also being displaced. what is driving them out is the cost of doing business and the cost of rental space. having office space to provide services. also wages are going up. we have one of the highest minimum wages in the nation and
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so they are contending with that, but also competing for executive talent against some of our really competitive companies here. and there is a talent war. talent can go other places including the private sector. they are being displaced and all those ways. they literally often cannot afford to operate and serve the populations here even though they are growing and demands are increasing. cory: we have seen high profile examples of these donor advised funds where the ceo for gopro putting stocks into a fund where they can direct what they want to do with it. is that working? are they actually selling the stock and distributing the money or is it just sitting there? guest: what is great about donor advice funds is they provide a place for someone to make a charitable allocation and then there's a place for them to go out. people are spending and allocating 30% of those accounts annually which is much larger than the 5% required.
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i'm excited about donor advice funds because they provide an immediate way for people to get involved in philanthropy and then they can take their time. >> and immediate tax breaks. >> yeah. the issue is how can we accelerate and make them more confident they can find opportunities to give and basically directing that money to causes around the globe and causes in their own backyard in silicon valley. cory: the work in your report it , looks like it was a time of work but it is a fascinating read. it is a little disturbing to know we have such poverty so close to such incredible wealth. guest: the first thing we need to do is just make people aware of it. silicon valley is not unique in this way, it's just staggering because we know the amount of millionaires and billionaires that live here so it is a sexy story. it is happening in communities
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all over the country. the first thing is for wealthy people to understand the data. cory: thank you very much. i'm going to post the report on my twitter account. all the episodes are available live streaming. this is bloomberg. ♪
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anna: is december a done deal? oil optimism. opec boosts efforts to secure its production deal. the trump shocks fade. the dollar weakens as investors question whether financial markets may have overreacted to his victory. ♪ anna:

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